Arbor Investments closes fifth fund with $1.5bn
The US food and drink equity investor also closed its second Debt Opportunities Fund with $168 million
Arbor, the investment company that specialises in private equity investing in the food and drink space, has closed its fifth equity fund, Arbor Investments V, with $1.5 billion of outside capital commitments. The company announced that its second captive subordinated debt fund, Arbor Debt Opportunities Fund, closed with $168 million of outside commitments, bringing Arbor’s total assets under management to $2.9 billion.
“We are humbled by the commitments from our longtime limited partners as well as the interest from new investors who have entrusted Arbor with their capital,” said Gregory Purcell, Arbor co-founder and chief executive.
Purcell argued the quick and successful closing of Arbor Fund V, especially during the Covid-19 pandemic, is a testament to Arbor’s outstanding investment track record over more than two decades.
“We anticipate tremendous opportunity to deploy this new capital with outstanding entrepreneurial families and blue-chip strategic players,” he added.
Arbor, a Chicago-based private equity firm, raises money from institutional investors, and invest the capital in companies to increase profits towards an exit plan. Investments are made within a 10-year fund cycle.
US-based Concord Foods, Bakery Cos, and Darifair are currently active portfolio companies.
Timothy Fallon, senior operating partner at Arbor, said: “Contrary to typical private equity firms, Arbor has always been focused on adding value beyond just capital, and our results reflect this unconventional approach.”
Fallon said Arbor is a firm believer in the advantages of industry specialisation. “Our model is rooted in leveraging the firm’s experienced team of in-house resources to identify and execute transformative changes to our portfolio companies. It’s an operationally intense, all-hands-on-deck attitude that we believe drives value creation and positions us as the partner of choice to companies in the food and beverage sector.”
“Arbor’s brand is stronger than ever,” added Arbor president Carl Allegretti. “To raise this amount of capital so efficiently in this unprecedented time is a testament to the strength of our team and the track record that has been built over the 21 years of Arbor. The best is yet to come.”
Shannon Advisors acted as placement agent, and Kirkland & Ellis LLP served as fund legal counsel.